:max_bytes(150000):strip_icc()/GettyImages-2223798482-ac216d185153475e952dbc5bb3bb6e56.jpg "What Delta Had to Say About the State of the Airline Business in Its Q3 Results")
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KEY TAKEAWAYS
- Delta Air Lines’ third-quarter results blew past analysts’ estimates, and the carrier raised its full-year outlook.
- Delta’s results, the first by a major airline this earnings season, drove its shares as well as those of rivals United Airlines and American Airlines higher Thursday.
Delta Air Lines (DAL) reported record third-quarter revenue and issued a rosy outlook, driven by higher premium and corporate travel sales.
The air carrier’s stock jumped over 6% following the news, making it one of the S&P 500’s best-performing stocks Thursday. Shares of rivals United Airlines (UAL) and American Airlines (AAL) also rose.
Delta posted adjusted earnings per share of $1.71 on revenue that rose 6% year-over-year to $16.67 billion, above analysts’ estimates compiled by Visible Alpha, as premium and business travel sales surged. Delta said its corporate sales rose 8% from a year earlier, while premium revenue gained 9%.
Looking ahead, Delta said it sees adjusted EPS of $1.60 to $1.90 for the fourth quarter, with the midpoint well above analysts’ consensus. Its projection for full-year EPS improved to approximately $6, compared to $5.25 to $6.25 previously.
Why This Matters
Delta’s strong results and outlook bode well for the airlines sector, and especially United Airlines, another carrier with a strong premium offering.
The results are the first in the airline sector this earnings season and show how premium carriers that rely more on international and first-class tickets—such as Delta and United Airlines—are flourishing.
In an interview with CNBC, Delta CEO Ed Bastian said the carrier’s operations are running smoothly despite the federal government shutdown, though he noted there could be an impact if it extends beyond the next 10 days.
